Florida FHA Construction Financing Mortgage Loans with 3.5% Down Payment!

What is a Florida FHA Construction Loan and how does it work?

An FHA 3.5% down payment construction to permanent mortgage loan combines the features of a construction loan and a traditional long-term 15 or 30 year fixed rate residential mortgage loan with a single loan closing prior to the start of construction. This is a big advantage because most construction loans require two closings one for construction and then another one when the home has been completed, saving you time and money. One of the best things is that you don't pay any interest or mortgage payments during the construction of your new home. The mortgage and builder approval process takes about 90 days from start to finish and we allow the builder up to 8 months to complete the construction. 

Let us help you with an FHA Construction Mortgage Loan to build your dream home and also finance the land up to your counties FHA maximum loan limitsIf you already own the land and have equity built up we will give you credit for the equity so you can put little or no money down. Land can be presently owned, whether free & clear or with a mortgage or can be purchased simultaneously from the builder or even a third party.

Florida FHA Construction Financing Mortgage Loans Borrower Requirements.

  • 620 Min Credit Score.
  • 3.5% Down Payment.
  • Gift Funds are ok.
  • No Foreclosures or Short Sales last 3 years.
  • No manual underwriting allowed.

Florida FHA Construction Financing Mortgage Loans Program Requirements.

  • Primary Residence only.
  • Single Family Homes only. (no multi-family allowed)
  • Florida only.
  • The borrower cannot perform any of the work.
  • Minimum Loan amount $175,000.


The One-Time Closing VA Construction Loans require 2 approvals, one is the buyer's mortgage loan and the second is the builder's approval. 

The company that oversees the entire construction approval and funding process is NCF and here are the fees that they charge.

  • Construction Admin Fee is 2.25% of loan amount.
  • Construction Underwriting Fee is $250.
  • Construction Closing Coordination Fee is $275.
  • Construction Inspection Fee is $750.
  • Interim/Construction Interest.
  • On average these fees add about $5,000 per $100,000 borrowed to the sales price of the contract.

The buyer makes no payments during the construction process and the Builder is required to include the cost listed above into their cost of building the home. These fees can't be charged to the borrower and will be charged to Builder and included in the FINAL sales price of the home or be absorbed by the Builder.

These fees are not much more than a conventional construction loan because most lenders charge 1% to 2% of the loan in origination points and they have very similar constitution fees. Construction Building & Builder Approval Process.

We offer loans in the entire state of Florida.
Monroe County Florida Cities; Big Pine Key, Islamorada, Key Colony Beach, Key Largo, Key West, Long Key, Marathon, Marathon Shores, Sugarloaf Shores, Summerland Key, and Tavernier, Collier County Marco Island, Naples, Golden Gate. Lee County Florida Cities: Alva, Boca Grande, Bonita Springs, Buckingham, Captiva, Cape Coral, Fort Myers, Fort Myers Beach, Lehigh Acres, Sanibel and Jacksonville, Tampa, Saint Petersburg, Hialeah, Orlando, Fort Lauderdale, Tallahassee, Hollywood, Pembroke Pines, Miami, Palm Beach, West Palm Beach, Boca Raton, Miramar, Sarasota, Gainesville, Bradenton

Got A Question?

Thanks and we look forward to working with you on your mortgage needs!

Fields marked * are required
First Name  *
Last Name  *
Email  *
Cell Phone  *
Loan Purpose  *
Loan Program Type: *  
Found a Property? 
Credit Self-Rating  *
Credit Score (Middle) 
Occupancy  Type*
Sales Price 
Down Payment 
Loan Amount  *
Bankruptcy  *
Best Time To Call 
Have you spoken with any of our loan officers?  *
What is their name?  *
How Did You Hear About Us?  *
Referral Person's Name?
Please Explain any Prior Short
Sales/Foreclosures & How Can We Help You?*